Question

FloorMate Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On October 1, FloorMate Carpet Company had the following inventories:

Finished Goods	$8,300
Work in Process-Spinning Department	2,000
Work in Process-Tufting Department	2,600
Materials	4,800

Departmental accounts are maintained for factory overhead, and both have zero balances on October 1. Manufacturing operations for October are summarized as follows:

Oct.	1	Materials purchased on account, $82,000
	2	Materials requisitioned for use:
		Fiber—Spinning Department, $42,600
		Carpet backing—Tufting Department, $34,700
		Indirect materials—Spinning Department, $3,300
		Indirect materials—Tufting Department, $2,900
	31	Labor used:
		Direct labor—Spinning Department, $26,300
		Direct labor—Tufting Department, $17,200
		Indirect labor—Spinning Department, $12,500
		Indirect labor—Tufting Department, $11,900
	31	Depreciation charged on fixed assets:
		Spinning Department, $5,300
		Tufting Department, $3,100
	31	Expired prepaid factory insurance:
		Spinning Department, $1,000
		Tufting Department, $800
	31	Applied factory overhead:
		Spinning Department, $22,400
		Tufting Department, $18,250
	31	Production costs transferred from Spinning Department to Tufting Department, $90,000
	31	Production costs transferred from Tufting Department to Finished Goods, $153,200
	31	Cost of goods sold during the period, $158,000

	Required:
1.	Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the Chart of Accounts for exact wording of account titles.
2.	Compute the October 31 balances of the inventory accounts.
3.	Compute the October 31 balances of the factory overhead accounts.

Answer 1

Answer 1.
Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
1-Oct	Materials	82,000.00
	Accounts Payable		82,000.00
	(To record the materials purchased)
2-Oct	Work in Process - Spinning Department	42,600.00
	Work in Process - Tufting Department	34,700.00
	Factory Overhead - Spining Department	3,300.00
	Factory Overhead - Tufting Department	2,900.00
	Materials		83,500.00
	(To record the material issued for production)
31-Oct	Work in Process - Spinning Department	26,300.00
	Work in Process - Tufting Department	17,200.00
	Factory Overhead - Spining Department	12,500.00
	Factory Overhead - Tufting Department	11,900.00
	Wages Payable		67,900.00
	(To record the Labor used for production)
31-Oct	Factory Overhead - Spining Department	5,300.00
	Factory Overhead - Tufting Department	3,100.00
	Accumulated Depreciation - Fixed Assets		8,400.00
	(To record the Depreciation Expense)
31-Oct	Factory Overhead - Spining Department	1,000.00
	Factory Overhead - Tufting Department	800.00
	Prepaid Factory Insurance		1,800.00
	(To record the expires prepaid insurance)
31-Oct	Work in Process - Spinning Department	22,400.00
	Work in Process - Tufting Department	18,250.00
	Factory Overhead - Spining Department		22,400.00
	Factory Overhead - Tufting Department		18,250.00
	(To record the factory overhead applied)
31-Oct	Work in Process - Tufting Department	90,000.00
	Work in Process - Spinning Department		90,000.00
	(To record the Cost transfererd)
31-Oct	Finshed Goods	153,200.00
	Work in Process - Tufting Department		153,200.00
	(To record the finished goods)
31-Oct	Cost of Goods Sold	158,000.00
	Finished Goods		158,000.00
	(To record the cost of goods sold)

Answer 2.
Finished Goods					Work in Process - Spinning Department
Beg. Bal.	8,300.00	158,000.00	31-Oct		Beg. Bal.	2,000.00	90,000.00	31-Oct
31-Oct	153,200.00				2-Oct	42,600.00
					31-Oct	26,300.00
					31-Oct	22,400.00
End. Bal.	3,500.00				End. Bal.	3,300.00
Work in Process - Tufting Department					Materials
Beg. Bal.	2,600.00	153,200.00	31-Oct		Beg. Bal.	4,800.00	83,500.00	2-Oct
2-Oct	34,700.00				1-Oct	82,000.00
31-Oct	17,200.00
31-Oct	18,250.00
31-Oct	90,000.00
End. Bal.	9,550.00				End. Bal.	3,300.00
Answer 3.
Factory Overhead - Spining Department					Factory Overhead - Tufting Department
2-Oct	3,300.00	22,400.00	31-Oct		2-Oct	2,900.00	18,250.00	31-Oct
31-Oct	12,500.00				31-Oct	11,900.00
31-Oct	5,300.00				31-Oct	3,100.00
31-Oct	1,000.00				31-Oct	800.00
End. Bal.		300.00			End. Bal.	450.00